Calculate how long it takes to recover an investment using monthly cash flow, annual cash flow, or uneven yearly cash flows. Use this calculator to estimate payback time, total return, profit, and ROI.
Monthly cash flow:
Enter total investment and monthly net cash flow to calculate the number of months needed to recover the investment.
Annual cash flow:
Enter annual net cash flow to estimate payback in years and months.
Uneven cash flows:
Enter a comma-separated list of yearly cash flows to estimate when cumulative cash flow pays back the investment.
Target time:
Enter a target number of months to calculate the monthly cash flow needed.
A payback period calculator helps compare investments, equipment purchases, rental projects, marketing campaigns, and business improvements by estimating how quickly the initial cost is recovered.
It is simple and useful, but it should be used alongside ROI, profit, risk, and long-term cash flow.
Your result shows the estimated time needed to recover the investment, total months, projected return, projected profit, and projected ROI. A shorter payback period means the investment cost is recovered faster.
Payback period is the amount of time it takes for an investment to recover its original cost through cash flow or savings.
Divide the total investment by the net cash flow per period. For monthly cash flow, the result is in months. For annual cash flow, the result is in years.
Usually, a shorter payback period means the investment recovers faster. However, long-term profit, risk, and total return should also be considered.
The basic payback period focuses on when the investment is recovered. This calculator also estimates projected profit and ROI for the selected projection period.